A number of sources have confirmed Clive Palmer has given serious consideration to a tilt for the Senate amid doubts he will hold on to his lower house Sunshine Coast seat of Fairfax. Photo: Glenn Hunt

The preference swap would maximise the chances of the Palmer United Party in the mining states of Queensland and Western Australia. Mr Palmer has considered installing himself as the party's lead candidate in Queensland.

Under the proposed deal, the Liberal Democrats would receive first preferences from PUP and Family First in its strongest states of NSW and Victoria, and Senator Day's party would be advantaged in Tasmania and his home state of South Australia.

Mr Palmer has personally offered a preference deal to Family First's Bob Day and Liberal Democrat David Leyonhjelm. Photo: Andrew Meares

A number of sources have confirmed Mr Palmer has given serious consideration to "remain at the centre of the action" via a tilt for the Senate amid doubts he will hold on to his lower house Sunshine Coast seat of Fairfax.

But there are also doubts that the mining magnate, who was identified earlier in the year to have the worst attendance record of any parliamentarian, could juggle the procedural demands of the Senate and his business interests.

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Mr Palmer told Fairfax Media that the fact that he has been written off in Fairfax is more reason to stand again and prove the doubters wrong. Helped by a big-spending campaign, he won Fairfax by just 53 votes to beat Liberal National Party candidate Ted O'Brien.

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The MP books a weekly ad in Sunshine Coast Daily to spruik his work in Fairfax but in the past month it has also featured his chief of staff James McDonald, leading to local speculation that he is preparing Mr McDonald to run for the seat.

Mr Palmer was formally the most powerful figure in crossbench negotiations with government ministers but his sway has been severely diminished by the departure of Senators Glenn Lazarus and Jacqui Lambie from PUP, leaving the party with just one senator, Dio Wang.

News of the preference deal with right-wing Family First and Senator Leyonhjelm's libertarian party will unsettle Liberal and National Party strategists as any success by the bloc would likely come at the expense of Coalition candidates.

The government is considering introducing far-reaching reforms, supported by Senator Nick Xenophon and the Greens but opposed by Labor, which would nullify the power of preference swaps through a type of optional preferential voting system.

Senator Leyonhjelm, who is also the registered officer of the "anti-Greens" Outdoor Recreation Party, confirmed the Palmer offer was under consideration.

"It was a proposal floated by Clive. Bob and I are sympathetic but there is nothing locked in at this stage. An election is a year away and I would hesitate to say anything is locked in at this stage," he said

The danger in the proposed deal, he said, is that it has the potential to alienate the parties from the minor party alliance which was vital to the success of crossbenchers in 2013.

Senator Day confirmed the offer but said nothing had been finalised and all preferences are up for consideration ahead of any election.

Senator Leyonhjelm said he had expected Mr Palmer to switch to the Senate until recently. "I have previously thought that was highly likely but he has made public statements that he is running for Fairfax. [Considering the size of his business interests] he would struggle to do both jobs," he said.

Mr Palmer was quoted in February as saying he would run again "if the people of Fairfax want me". He told Fairfax Media he did not have the same need to get re-elected as most other politicians.